The 173rd meeting of the Idaho Lottery Commission took place on Tuesday, July 24, 2012 at 12:00 PM at 1199 Shoreline Lane, Boise, Idaho 83702.

Attendees:

Commissioners Present: Chairman, Roger Jones

Commissioner, Mel Fisher

Commissioner, Craig Corbett

Commissioner, Jim Rehder

Commissioner, David Keyes

Lottery Staff Present:

Executive Director, Jeffrey Anderson

Chief Operating Officer, Becky Schroeder

Deputy Director of Security, Amber French

Deputy Director of Sales, Mike Helppie

Deputy Director of Marketing, Sherie MoodySt. Clair

Management Assistant, Jennifer QuinnoMiller

Public Information Specialist, David Workman

Sales Representative, Kevin Cope

Sales Manager, Shannon Newhouse

Others Present:

Zeke Chemodurow, Intralot

Ryan Belveal, International Gamco

Edward Moore, DaviesMoore

Carolyn Sali, DaviesMoore

Jeremy Chou, GivensPursley

1. Meeting Called to Order

Meeting called to order by Chairman Jones at 12:00 PM.

2. Approval of Minutes

Commissioner Fisher moved to approve the minutes from May 17, 2012. The motion was seconded by Commissioner Rehder. The vote was unanimous for approval.

Commissioner Fisher moved to approve the minutes from June 28, 2012. Commissioner Keyes seconded the motion. The vote was unanimous for approval.

3. Director Update

Director Anderson reviewed the Lottery’s Strategic Plan. Director Anderson pointed out that we measure our success against peer group lotteries in the United States using real numbers for comparisons. The states that are chosen as peer groups are chosen because of their similarity to us in regards to product mix and how they go to market.

He updated the Commission on the Scientific Games extension. Scientific Games has submitted extension information to us, and we are in the process of reviewing.

The Director updated the Commission on GeoSweep. He explained that the MUSL group has had conversations about mapping the entire country which would reduce the cost for the participating States, but since then, we have discovered that the Atlantic Lottery has an equity interest in GeoSweep. When we look into background checks and other things we do, having a Provincial jurisdiction involved made us realize we needed to do more work before moving forward. MUSL is now in the process of doing a more thorough review of the company. The January launch previously discussed is probably viable with a best case scenario of April.

Chief Operating Officer Schroeder reviewed some of the Statute and Rule modifications being proposed this legislative session. We are asking for a legislative change to allow us to play in a world game. Currently, Code says we can only participate with Canadian and United States lotteries, but we are asking them to expand that language so when there is a World game, we will be ready. The World game is set to launch in January 2014.

We have submitted a fee rule to allow us to apply a debit card consumer fee. The rule would allow us to pass a transaction fee on to players using a debit card on vending machines if the player chooses to use a card. Players will still have the choice to use cash or debit card, but this would allow us to capture some of the cost associated with the use of debit cards on the machines.

In response to the recommendations from the Office of Performance Evaluations, we are working to clarify the language in Statute that refers to what is considered an advertising expense versus what is not. We are recommending that we should include in Statute what is not an advertising expense as opposed to what is included as an advertising expense because things change and things we now consider advertising were not around many years ago and we don’t want to limit what might come along in the future.

Other modifications include clarifying the Health and Welfare and tax set off to make sure our Code clarifies which one would hit first should there be a set off for both, modifications that clarifies the language that corresponds to multiple claimants, and we are working on proposing another game type.

4. Legislative Idea Submission Roll Call Vote

Commissioner Rehder described the Legislative Idea that he is proposing be submitted this year. When he joined the Lottery Commission he reviewed the honorarium and learned that the current honorarium of $50 was established 23 years ago when the Lottery began. To compensate for inflation and taxes, he is proposing the honorarium be increased to $75 per day for official action when the Commission is in session.

Becky Schroeder presented the Quarterly and Current Sales report. The sales report data is recorded in the minutes as an attachment.

6. Sales Division Update

Deputy Director Helppie informed the Commission that things are moving along with the Liquor Division and we are going to begin installing Lottery in all the Liquor stores.

He also recognized Kevin Cope as the Lottery Sales Representative of the Quarter. For the quarter, his region had an increase of 21.36% in sales over last year.

7. Marketing Division Update

Deputy Director MoodySt. Clair updated the Commission on what is happening in the Marketing division. We are in the middle of our “Name that Scratch Game” contest and we have about 3500 entries so far.

Coming up is the Happy Days of Summer promotion that promotes our Happy Days scratch ticket and players can then enter nonwinning tickets for a chance to win $10,000.

During the NASPL Professional Development Seminars in Orlando, Idaho won the Delegate Award for the Wooh! Crew Gear.

She also recognized David Workman for winning the Powers Award at NASPL.

8. Educational Track

The educational track was postponed until future meetings.

9. Set Future Commission Meeting Date

The meeting has been set for November 2, 2012 for a location to be determined in Northern Idaho.

10. Adjournment

Commissioner Corbett moved to adjourn. Commissioner Rehder seconded the motion. The vote was unanimous to adjourn.

Certification:

I hereby certify that the foregoing minutes are a true and correct record of the actions and decisions made by the Lottery Commission.